Addition changes, savings not passed on

9 years ago

We are in the middle of a large construction project. Our original plan was for a 17x17 addition off the end of our ranch. Due to a property line issue the addition needed to be shortened to 12x17, so we lost the extra 5x17 space (85sq. ft). It wasn't a huge deal, we ended up putting the bathroom in the existing house, and doing built in closets instead of a walk-in. Now that it is coming down to payment time, our contractor seems to be nickle and diming us despite the fact that from the beginning he has said he will charge us a set price for things, and he isn't giving us a straight answer regarding how much money a 30% decrease in addition size saved us. Should we expect to see a 30% savings on labor and material related to the addition? The addition is roughly $90/sq ft. so I would expect we would have saved money by decreasing the size and losing 85 sq. ft. I imagine if we asked him to increase the size of the addition by 5 ft., he would have charged us accordingly. Thank you! Any feedback is greatly appreciated.

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User

9 years ago

What about the changes to the plan that cost more? Like the relocation of the bath to the existing space? That costs a LOT more money than putting a bath in new construction. Did you factor that into any potential savings that you think exists? If the project actually ended up costing less, it will be by very little. It may have cost him more. Especially if he had to deal with the city on the setback issues.

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Comments (9)

Fori
9 years ago
In general, you won't save 30% for a 30% decrease in size because you're most likely keeping the things that cost the most, like the bathroom. The cost for regular living space (not plumbing etc.) is comparatively small.

As far as how to deal with a GC who is being difficult, I haven't figured that one out yet...know your contract really well before you try to work it out with him. Good luck!
greg_2015
9 years ago
So you didn't get (and agree to) a price change when the project was changed? You just went ahead with it?

There goes your bargaining chip.
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Laura
Original Author
9 years ago
last modified: 9 years ago
I should clarify, I was not referring to the cost of the bathroom/electric/plumbing. I am referring to savings for labor and materials. I.e. framing materials/labor, roofing/siding/etc materials/labor, flooring labor, etc.
PRO
Beck Renovate and Remodel
9 years ago
It is my opinion that the contractor would & should pass on some savings. I typically pass on the savings because that is the right thing to do and how I do business.
PRO
Beck Renovate and Remodel
9 years ago
My point is that the reduction of the area would create a savings but the other areas would be extra if there are changes. I like to show the customer the credits and then show the additional cost.
PRO
Joseph Corlett, LLC
9 years ago
last modified: 9 years ago
People mistakenly think that there isn't a minimum necessary for a square foot charge. Countertops or additions, it doesn't matter. You can get countertops installed in your kitchen for $60.00 per square foot, but if your fabricator tries to do individual bath vanities for that price, he'll be bankrupt in a hurry.

Does the guy digging the footer for the addition charge any less for digging 10 less lineal feet? Of course not; he's still got to trailer, load and unload the backhoe. Same porta pot on the job. Same dumpster.

He's not sharing any savings, because there's nothing to share.
freeoscar
9 years ago
You are talking about 10 lineal feet of wall and 85 sf of floor and ceiling. There isn't much material or labor savings there, and it would be dwarfed by the increased expense of having to make unanticipated changes to the interior.
PRO
Charles Ross Homes
9 years ago
The contractor should be obligated to construct the addition substantially as per the approved plans and specifications. When the scope of work changed (and I wonder why the issue with the property line wasn't identified during the design process) the project should have come to a halt, plans should have been revised, the new scope of work spelled out along with any associated costs/savings resulting from the change and a written change order issued for approval by both the contractor and owner. Doing so after the fact is in nobody's best interest.